the staff of the Ridgewood blog
NEW YORK — Cryptocurrency entrepreneur Kwon Do-hyung, widely known as Do Kwon, has pleaded guilty to federal conspiracy and wire fraud charges, marking a dramatic turn in one of the largest collapses in digital asset history.
Kwon, 33, co-founded Terraform Labs in 2018, launching a so-called stablecoin he claimed was pegged to the U.S. dollar. In May 2022, that promise crumbled when a wave of investor withdrawals sent the currency’s value to nearly zero within days, erasing over $40 billion in investor wealth.
Federal prosecutors accused Kwon of misleading investors about the stability and true value of Terraform’s cryptocurrency.
Details of the Plea Deal
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Forfeiture: $19.3 million in cash and multiple properties
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Potential Sentence: Up to 12 years in federal prison
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Sentencing Date: December 11, 2025
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International Implications: May serve part of sentence in South Korea, where he faces additional criminal charges
This agreement is separate from a $4.5 billion civil settlement Kwon and Terraform Labs reached with the U.S. government in 2024.
If sentenced to the maximum term, Kwon could spend six years in the U.S. before being transferred to South Korea to serve the remainder of his sentence.
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